Norwegian Air Shuttle ASA · OSL:NAS
Norwegian Air Shuttle ASA — Investor Presentation (May 2021)
30 slides from Norwegian Air Shuttle ASA's investor presentation, May 6, 2021
Slide 1: Norwegian Air Shuttle ASA Investor presentation
Norwegian Air Shuttle ASA Investor presentation 6 May 2021
Slide 2: Disclaimer
Disclaimer THIS DOCUMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, ITS TERRITORIES OR POSSESSIONS, AUSTRALIA, CANADA, JAPAN, HONG KONG OR SOUTH AFRICA OR TO ANY RESIDENT THEREOF, OR ANY JURISDICTION
Slide 3: Disclaimer (cont’d)
Disclaimer (cont’d) This Presentation has not been reviewed by or registered with any public authority or stock exchange and does not constitute a prospectus. An investment in the Offer Shares must be made on the basis of the Prospectus (including Summary, Registration Document and the Securities No
Slide 4: Summary of risk factors
Summary of risk factors The Group is exposed to numerous risk factors. A summary of a selection of material risk factors associated with an investment in the Offer Shares is outlined below. All potential investors should read the presented risk factors in its entirety before making a decision on whe
Slide 5: Summary of risk factors (continued)
Summary of risk factors (continued) Risks relating to the Group’s operations Operational The Group's flights may be negatively affected by a number of factors, many of which are outside the Group's control, such as technical problems, problems with information technology systems, third-party service
Slide 6: Summary of risk factors (continued)
Summary of risk factors (continued) Risks relating to tax and financial conditions The Group is In March 2017 and June 2018, the Norwegian Tax Authorities made a reassessment pertaining to an EEC cross-border restructuring within the Group that took place in 2013 and 2014. The restructuring was carr
Slide 7: Summary of risk factors (continued)
Summary of risk factors (continued) Risks relating to the Group’s industry The Group is The Group's financial results are affected by the evolution of the market price of jet fuel, as fuel costs are the single largest cost item for the Group. The operating results of the Group can be materially affe
Slide 8: Agenda
Agenda Transaction Summary Investment case Summary
Slide 9: Restructuring overview – total liabilities reduced by more than NOK 63 billion
Restructuring overview – total liabilities reduced by more than NOK 63 billion compared to Q4 2019 1 2 3 4 Reduction of secured debt Reduction of unsecured debt Reduction of capex commitments Capital raise1) Long-haul operations abandoned and Unsecured debt (including secured Long-haul operations ab
Slide 10: Treatment of unsecured creditors in the restructuring
Treatment of unsecured creditors in the restructuring Summary of treatment of unsecured creditors 1 Dividend Claim Creditors1) will receive a pro rata cash dividend from a NOK 500 million Cash dividend cash pot Dividend Claim Creditors1) will receive Remainder of dividend (after deducting the releva
Slide 11: Summary of the capital raise
Summary of the capital raise Item Amount Description Directed towards holders of existing shares registered as held on 4 May 2021 (as registered in the VPS on 6 May 2021) Up to 3 subscription rights for every 2 existing shares held on such date Rights Issue NOK 395 Subscription price of NOK 6.26 per
Slide 12: Issue price in the capital raise set to meet the criteria of the Scheme
Issue price in the capital raise set to meet the criteria of the Scheme Criteria from the scheme Illustrative issue price calculations1) According to the Proposals for Scheme Amount Issue price # shares of Arrangement dated 11 March 2021 the (NOK million) (NOK / share) (fully diluted) investors in t
Slide 13: Timeline – capital raise and restructuring
Timeline – capital raise and restructuring Capital raise Effective date Creditor payments and debt conversion Commencement of Approval and Final result of rights End of subscription Issuance of creditor conversion period for publication of issue and private period dividend remaining New Capital pros
Slide 14: Agenda
Agenda Transaction summary Investment case Summary
Slide 15: Key investment highlights
Key investment highlights 1 Restructured balance sheet with debt reduction of NOK 63 - 65 bn and liquidity buffer of NOK 7 bn provides financial solidity 2 Focus on profitable routes in highly attractive Nordic and European short-haul markets 3 Early signs of recovery in the short haul markets – ong
Slide 16: Total liabilities reduced to NOK 16-18 billion post restructuring
1 Total liabilities reduced to NOK 16-18 billion post restructuring Total reduction in liabilities since pre-covid Estimated total liabilities Total liabilities (NOK million) ~80% NOK million Target 81,218 Aircraft financing 5,800-6,300 NAS 13 750 NAS 09 250 Total interest bearing debt1) 6,800-7,300
Slide 17: Norwegian post restructuring is focused solely on a strengthened short-haul network in Europe
2 Norwegian post restructuring is focused solely on a strengthened short-haul network in Europe Short-haul route network 2022 Consolidated to Nordics with scale to defend cost position Short-haul ASK (million) & no. of aircraft at year-end #68 aircraft in -68% operation 100,031 -40% ~40 53,628 156 ~
Slide 18: Future network retains the presence & connectivity that our Nordic customers value
2 Future network retains the presence & connectivity that our Nordic customers value Focused network strategy to fortify the Nordics We preserve our Nordic market presence Nordic market presence in ’22 vs. ‘19 # routes Relative shift toward the home market with ~50 % of planned production. Norway De
Slide 19: Focus on core Nordic routes with proven historical profitability
2 Focus on core Nordic routes with proven historical profitability Profitability on selected routes - EBT Key drivers for improved profitability in 2022 NOK million 2018 Route mix: The main effect (over 50 %) derives from network changes by rationalizing underperforming routes, both non-Nordic and i
Slide 20: Norwegian has clear advantages in a ramp-up environment
3 Norwegian has clear advantages in a ramp-up environment Win back the Nordic customer Cash-accretive operation Customer needs Operational requirements Attractive Aircraft prices The cost position & network strength Retain aircraft on Power-by-the- flexibility to offer highly competitive prices on H
Slide 21: No 1 or 2 position in all core markets with strongest top of mind brand awareness
4 No 1 or 2 position in all core markets with strongest top of mind brand awareness Leading Nordics LCC by offering quality at affordable price Nordic customers have learned to know and love the brand • Pre-Covid, NAS was the leading carrier for leisure-oriented traffic and • Norwegian has a strong
Slide 22: Norwegian is strongly positioned to win the customer
4 Norwegian is strongly positioned to win the customer UltraULCCs low-cost Start-ups Start-ups Legacy Legacy Norwegian competes on Norwegian competes on Norwegian competes on QUALITY SCALE PRICE BRAND • Compete on quality of service: • Stronger network breadth & depth in • Compete on price from sust
Slide 23: To leverage the attractive loyalty program to drive market share
4 To leverage the attractive loyalty program as a means to drive market share in the new competitive environment Industry-leading loyalty program to drive market shares While closely managing liquidity risk Nordic Reward members (million) • Reward program frozen1 as of 1st February 2021 Norway 1,80
Slide 24: A legacy of low-cost operations will add value and support the profitability of Norwegian
5 A legacy of low-cost operations will add value and support the profitability of Norwegian Competitive cost position already in 2022 Comments CASK ex. fuel (NOK cent) A leading cost position has been Norwegians historical competitive advantage in its core markets, in combination with 60 a strong No
Slide 25: 20 years of experience running cost-efficient operations
5 20 years of experience running cost-efficient operations - rightsized and streamlined for a new competitive environment Solid, cost-efficient foundation Built on the low-cost carrier model since 2002 and optimized for Nordic Major steps taken conditions. to simplify Maintained cost-advantage versu
Slide 26: Thoroughly restructured and flexible ownership costs
5 Thoroughly restructured and flexible ownership costs Evolution of the fleet in the past 12 months Implications of fleet restructuring 147 140 47x leased 1. Aircraft debt reduction – total aircraft debt reduced by ~90 % 37 37 4x owned Fleet 51 2. No outstanding order – cancelled two aircraft orders
Slide 27: Highly qualified and diverse Executive Team and a very strong Red Nose Warrior people platform
6 Highly qualified and diverse Executive Team and a very strong Red Nose Warrior people platform & culture CEO Jacob Schram Finance & Control People Geir Karlsen Guro Halvorsen Poulsen IT & Business Communications & Services Public Affairs Knut Olav Irgens Høeg Anne-Sissel Skånvik Network, pricing a
Slide 28: Agenda
Agenda Transaction summary Investment case Summary
Slide 29: A restructured and investable Company built on its unique market and customer position
A restructured and investable Company built on its unique market and customer position Transaction summary Investment highlights Restructured balance sheet with debt reduction of Short-haul only & focused on four Nordic source NOK 63-65 bn markets. Established, proven routes in the portfolio Secured
Slide 30: Fly Norwegian
Fly Norwegian Book tickets at Norwegian.com 30
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